A Market Segment Meets All Criteria for Viability

question 29

Multiple Choice

A market segment meets all criteria for viability. However, what else is necessary for a firm to successfully pursue that segment?

• A) The segment should allow for little competition.
• B) The segment should be inexpensive to reach.
• C) The segment should have synergy with the firm's mission.
• D) The segment is easy to reach with traditional forms of communication.
• E) The segment's members cannot overlap into other segments.

---

Definitions:

Cash Coverage

A ratio that measures a company's ability to meet its interest obligations with its operating cash flow, providing insight into financial stability.

Price/Earnings Ratio

A metric that measures the relationship between a company's stock price and its per-share earnings, providing insight into the market's valuation of the company.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Cash Coverage Ratio

A liquidity ratio that measures a company’s ability to pay off its debt with cash and cash equivalents, indicating financial health.